Our integrated approach to ESG analysis is focused on identifying and mitigating material risks often overlooked by a more traditional fundamental fixed income research process. This is consistent with our core philosophy of downside risk reduction and principal preservation. For instance:
- Legal, environmental, and labor weaknesses can lead to increased cost of capital, reduced access to funding, and reputational damage.
- Resource-efficient operations can improve margins.
- A diverse, independent board can alleviate business risks associated with groupthink.